How can an investment fund that guarantees a monthly profit of around 4%, with the bank buying goods on behalf of the client and guaranteeing their purchase from him, be compliant with Islamic Sharia?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
Guaranteeing profit in transactions renders them impermissible, moving them from permissibility to prohibition. For example, stipulating a guarantee in a contract invalidates it and turns it into a loan. Therefore, it is not permissible to participate in investment funds that stipulate a profit guarantee.
Summarized from the full answer at Ftawy · imported
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